The Light Sweet Crude contract had a bearish week as the market pulled back from the $110 level. However, the market remains above the $105 level, and it shows that perhaps we are simply looking for a rest before moving forward. The $115 level is much more resistive than the $110 area, and it looks as if the market wants to move in that direction.
The selling of oil cannot be a possibility, as long as the situation in Iran continues. The $100 mark is our line in the sand. As long as we are above that level, we are only buying. While we are looking at the long term charts, the signal to go long will more than likely be on the shorter timeframes. A break above $110 with a daily close above it sends us into the market for the longer-term. The buying of this contract is the only way we want to go at the moment, so we are also willing to buy on short term support in the $105 area.
Oil Forecast for the Week of March 5, 2012, Technical Analysis
Crude Oil Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3